LPL Financial Reports Monthly Activity for May 2022

Rhea-AI Summary

LPL Financial LLC reported significant growth in its May 2022 activity report, showcasing total advisory and brokerage assets of approximately $1.12 trillion, marking a 2.2% increase from April. Total net new assets reached $24.8 billion, reflecting a 27.2% annualized growth rate. Notably, client cash balances grew by $5.3 billion to $67.1 billion in May. The firm onboarded $18.2 billion in brokerage assets and $1.3 billion in advisory assets, with total net new advisory assets at $5.1 billion.

Positive

• Total advisory and brokerage assets increased to $1.12 trillion, a 2.2% month-over-month growth.
• Total net new assets were $24.8 billion, with a 27.2% annualized growth rate.
• Client cash balances rose by $5.3 billion, reaching $67.1 billion.
• Successful onboarding of $19.5 billion in client assets from CUNA.

Negative

• None.

SAN DIEGO, June 14, 2022 (GLOBE NEWSWIRE) -- LPL Financial LLC, a wholly owned subsidiary of LPL Financial Holdings Inc. (Nasdaq: LPLA) (the “Company”), today released its monthly activity report for May 2022.

Total advisory and brokerage assets at the end of May were approximately $1.12 trillion, an increase of $24.6 billion, or 2.2%, compared to the end of April 2022.

Total net new assets for May were $24.8 billion, translating to a 27.2% annualized growth rate. This included $18.2 billion of brokerage assets and $1.3 billion of advisory assets from CUNA that onboarded in May⁽¹⁾. Total net new advisory assets were $5.1 billion, translating to a 10.4% annualized growth rate.

Total client cash balances at the end of May were $67.1 billion, an increase of $5.3 billion compared to the end of April 2022. Net buying in May was $0.2 billion.

(End of Period $ in billions,		May	April	Change	May	Change
unless noted)		2022	2022	M/M	2021	Y/Y
Advisory and Brokerage Assets
Advisory Assets		591.8	586.3	0.9%	559.0	5.9%
Brokerage Assets		528.6	509.5	3.7%	515.1	2.6%
Total Advisory and Brokerage Assets		1,120.4	1,095.8	2.2%	1,074.1	4.3%
Total Net New Assets
Net New Advisory Assets		5.1	2.2	n/m	5.7	n/m
Net New Brokerage Assets		19.6	(0.3)	n/m	0.4	n/m
Total Net New Assets		24.8	1.9	n/m	6.1	n/m
Organic Net New Assets
Net New Organic Advisory Assets		5.1	2.2	n/m	5.7	n/m
Net New Organic Brokerage Assets		19.6	(0.3)	n/m	0.4	n/m
Total Organic Net New Assets		24.8	1.9	n/m	6.1	n/m
Net Brokerage to Advisory Conversions		0.6	0.7	n/m	1.0	n/m
Client Cash Balances
Insured Cash Account Balances		37.3	34.1	9.4%	34.5	8.1%
Deposit Cash Account Balances		11.0	9.2	19.6%	7.6	44.7%
Total Bank Sweep Balances		48.3	43.3	11.5%	42.0	15.0%
Money Market Account Cash Balances		17.1	16.9	1.2%	4.3	n/m
Purchased Money Market Funds		1.7	1.6	6.2%	1.5	13.3%
Total Money Market Balances		18.9	18.5	2.2%	5.8	n/m
Total Client Cash Balances		67.1	61.8	8.6%	47.8	40.4%
Net Buy (Sell) Activity		0.2	3.1	n/m	5.2	n/m
Market Drivers
S&P 500 (end of period)		4,132	4,132	0.0%	4,204	(1.7%)
Russell 2000 (end of period)		1,864	1,864	0.0%	2,269	(17.8%)
Fed Funds Effective Rate (average bps)		76	33	n/m	6	n/m

(1) As of the end of May, $19.5 billion of client assets have onboarded from CUNA out of a total of ~$32 billion.

Note: Totals may not foot due to rounding.

For additional information regarding these and other LPL Financial business metrics, please refer to the Company’s most recent earnings announcement, which is available in the quarterly results section of investor.lpl.com.

Contacts

Investor Relations
investor.relations@lplfinancial.com
(617) 897-4574

Media Relations
media.relations@lplfinancial.com
(980) 321-1232

About LPL Financial

LPL Financial Holdings Inc. (Nasdaq: LPLA) was founded on the principle that the firm should work for the advisor, and not the other way around. Today, LPL is a leader in the markets we serve*, supporting over 20,000 financial advisors, including advisors at approximately 1,000 institution-based investment programs and at approximately 500 registered investment advisor ("RIA") firms nationwide. We are steadfast in our commitment to the advisor-centered model and the belief that Americans deserve access to personalized guidance from a financial advisor. At LPL, independence means that advisors have the freedom they deserve to choose the business model, services, and technology resources that allow them to run their perfect practice. And they have the freedom to manage their client relationships, because they know their clients best. Simply put, we take care of our advisors, so they can take care of their clients.

* Top RIA custodian (Cerulli Associates, 2020 U.S. RIA Marketplace Report); No. 1 Independent Broker-Dealer in the U.S (Based on total revenues, Financial Planning magazine 1996-2021); No. 1 provider of third-party brokerage services to banks and credit unions (2020-2021 Kehrer Bielan Research & Consulting Annual TPM Report); Fortune 500 as of June 2021. LPL and its affiliated companies provide financial services only from the United States.

Securities and Advisory services offered through LPL Financial LLC, an SEC-registered broker-dealer and investment advisor. Member FINRA/SIPC.

Throughout this communication, the terms “financial advisors” and “advisors” are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial LLC. We routinely disclose information that may be important to shareholders in the "Investor Relations" or "Press Releases" section of our website.

FAQ

What were LPL Financial's total assets at the end of May 2022?

LPL Financial's total advisory and brokerage assets at the end of May 2022 were approximately $1.12 trillion.

How much did LPL Financial onboard in new assets in May 2022?

In May 2022, LPL Financial onboarded a total of $24.8 billion in net new assets.

What was the annualized growth rate for net new assets at LPL Financial in May 2022?

The annualized growth rate for total net new assets at LPL Financial in May 2022 was 27.2%.

How did client cash balances change for LPL Financial in May 2022?

Client cash balances increased by $5.3 billion to $67.1 billion at the end of May 2022.